Insights from the UK and beyond
Is the housing package enough?
The government proposes to stimulate the housing market by scrapping stamp duty for a year on purchases of homes worth less than 175,000 pounds.
At the moment, the no-tax threshold is 125,000 pounds.
The government also plans to offer cheap loans of up to 30 percent of the purchase price of a house for first-time buyers. Households earning less than 60,000 pounds a year will not have to pay interest for five years on the loans, providing they buy newly built properties.
For the most vulnerable homeowners falling behind on mortgage payments, the government says councils or social housing landlords can pay off the debt and instead charge tenants rent “at a level they can afford”.
All this is good news for housebuilding companies of course but what do you think of the package as a means of relieving the constipation in the housing market as a whole? Is it enough to get first-time buyers back on the ladder and alleviate the effects of hardship caused by rising prices?